Question :
31) Refer to Figure 3.7. A movement from Point C : 1381046
31) Refer to Figure 3.7. A movement from Point C to Point B on demand curve D2 would be caused by a(n)
A) decrease in income, assuming pizza is a normal good.
B) decrease in the price of hamburgers, assuming that pizza and hamburgers are substitutes.
C) decrease in the price of pizza.
D) increase in the price of pizza.
32) Refer to Figure 3.7. A decrease in demand is represented by the movement
A) from D2 to D1.
B) from D2 to D3.
C) along D2 from Point B to Point A.
D) along D2 from Point B to Point C.
33) Refer to Figure 3.7. An increase in quantity demanded is represented by movement
A) from D2 to D1.
B) from D2 to D3.
C) along D2 from Point B to point A.
D) along D2 from Point B to point C.
Refer to the information provided in Figure 3.8 below to answer the following questions.
Figure 3.8
34) Refer to Figure 3.8. Assume that there are only two people in the market for baseball caps: Alex and Ryan. Along the market demand curve for baseball caps, at a price of ________, quantity demanded would be ________.
A) $10; 7
B) $10; 11
C) $8; 12
D) $8; 13
35) Refer to Figure 3.8. Assume there are only two people in the market for baseball caps: Alex and Ryan. Along the market demand curve for baseball caps, at a price of ________, quantity demanded would be ________.
A) $10; 6
B) $10; 12
C) $8; 14
D) $8; 25
Refer to the information provided in Figure 3.9 below to answer the following questions.
Figure 3.9
36) Refer to Figure 3.9. Assume that there are only two people in the market for coconuts: Sasha and Kyle. Along the market demand curve for coconuts, at a price of ________, quantity demanded would be ________.
A) $14; 7
B) $14; 9
C) $10; 9
D) $10; 8
37) Refer to Figure 3.9. Assume there are only two people in the market for coconuts: Sasha and Kyle. Along the market demand curve for coconuts, at a price of ________, quantity demanded would be ________.
A) $10; 9
B) $10; 10
C) $14; 9
D) $14; 8
Refer to Scenario 3.1 below to answer the questions that follow.
SCENARIO 3.1: Rented DVDs and movies shown in theaters are substitutes. Rented DVDs and plasma TVs are complements. Plasma TVs and movies shown in theaters are normal goods. People watch rented DVDs more often in the winter than in the summer.
38) Refer to Scenario 3.1. Most plasma TVs sold in the United States are imported from Japan. If the United States government reduces the number of plasma TVs that can be imported into the United States, ceteris paribus, what would happen?
A) The price of plasma TVs and the rental price of DVDs would decrease.
B) The price of plasma TVs would decrease, and the rental price of DVDs would increase.
C) The price of plasma TVs would increase, and the rental price of DVDs would decrease.
D) The price of plasma TVs and the rental price of DVDs would increase.
39) Refer to Scenario 3.1. To raise additional revenues, the government imposes an entertainment tax on movie tickets, but there are no new additional taxes levied on rented DVDs. This would lead to
A) an increase in the price of movie tickets, but no change in the rental price of DVDs.
B) an increase in the price of movie tickets and the rental price of DVDs.
C) an increase in the price of a movie ticket and a decrease in the rental price of DVDs.
D) no change in the price of a movie ticket and an increase in the rental price of DVDs.
40) Refer to Scenario 3.1. You observe that the rental price for DVDs is higher in the winter than in the summer. This would be explained by the fact that
A) demand for rented DVDs is higher in the winter than in the summer.
B) the quantity demanded of rented DVDs is higher in the winter than in the summer.
C) there are more DVDs released into the rental market in the winter than in the summer.
D) consumer income tends to fall in the winter and increase in the summer.
